Following the IPO at a valuation of around $18 billion earlier this month, US-based Stablecoin Company Circle took another important step. The company has launched the formal process of obtaining a National Trust Bank license by applying to the US office of the Secretary of Currency (OCC).
If approved, Circle can provide its own reserves and retain crypto assets on behalf of the institution's client, but unlike traditional banks, the license does not grant the authority to create cash deposits or loans.
“For a long time, the circle has been seeking the highest level of trust, transparency, governance and compliance. Being a public company was part of its vision. Being a National Trust Bank is a continuation.”
If Circle obtains a National Trust Bank license, the new units it establishes are currently NA, and Anchorage Digital is called the only digital asset company in the US with a National Trust Bank license. If your Circle application is approved, it will be the second company in this area. The new bank will manage most of the USDC Stablecoin reserves, supported by US dollars. However, Allaire noted that some reserves will continue to be held by major banks.
Additionally, Circle can provide custody of digital assets to institutional clients through this new structure. Allaire said the service will focus on traditional financial products such as stocks and bonds that have been tokenized on the blockchain, rather than cryptocurrencies such as Bitcoin and Ethereum.
*This is not investment advice.
